Turner DeVaughn / Benchmark

Apple

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PC vs. Mac: Which is the superior value proposition?

www.businessinsider.com/microsofts-latest-ant-apple-ad-macs-so-sexy-overpriced-clip-2009-4

It’s a question with no short answer, of course, but it’s never a boring debate. Does the cheaper PC have the “value” edge over Apple at a time when people are more value conscious? As always, it depends on whom you ask. There are PC-philes out there who just don’t like Apple or anything about it. There are Apple fans that wouldn’t be seen in the same cubicle with a PC. There are people in the middle who just want a computer to do the stuff most of us do with a computer, but who still think Apple is a brand that promises a lot more than a superficial fashion statement.

Here’s my two cents (and how about THAT for value?): From a manufacturer’s point of view, it comes down to the way you’ve identified your target. Apple knows everything about their target and exactly what that buyer will spend to get the benefits of using a Mac. They design and sell products impeccably suited to this buyer and no one else. It’s comparable to what the pricier brands in some other categories do -- products that don’t necessarily suffer in an ailing economy anymore than the budget-conscious brands. BMW, Mercedes, Lexus, etc., are selling fewer cars today, yes. But so are Ford, Chevy and Dodge. BMW drivers want to own and drive a BMW, not a Buick (sorry, Tiger) and they’ll spend a lot more money for the privilege.

Apple doesn’t aim the Mac at budget-minded parents sending kids off to college. And it doesn’t waste energy promoting to the hardcore PC legions. To Mac users, a PC running Windows/Vista is a waste of money that could have been put toward a new Mac and OSX. Apple prices its stuff according to our value-proposition formula, BTW. It can quantify and validate the value of a Mac’s benefit according to the people who buy it, it drives adoption costs to practically zero, and it sets the price point accordingly. And this is what a compelling and relevant value proposition is all about.

— Stan DeVaughn